Seoul: The ruling Democratic Party (DP) and the government have announced reform measures aimed at overhauling NongHyup, the country's agricultural cooperative and banking group, in response to a series of corruption scandals.

According to Yonhap News Agency, the initiative follows a special audit conducted nearly a month ago, which uncovered multiple irregularities within the group, including potential embezzlement of public funds, preferential loan arrangements, and accounting fraud. These findings prompted DP lawmakers and government officials to deliberate on reform strategies during consultations at the National Assembly, as reported by Rep. Yoon Joon-byeong.

As part of the reform measures, a new audit committee will be established to ensure effective oversight of the group. The plan also includes steps to enhance transparency by restricting the group's chairman from exerting undue influence over personnel and management decisions. Additionally, legal provisions will be put in place to suspend employees found guilty of crimes such as bribery or embezzlement.

The DP and the government aim to finalize the legislative process for these reforms ahead of the June 3 local elections. The urgency is underscored by allegations against NongHyup Chairman Kang Ho-dong, who is accused of embezzling funds from an affiliated foundation in 2024 and 2025. These funds were reportedly used to procure gifts worth 490 million won (US$327,000) for individuals who supported his election as chairman.

Further allegations against Kang include accepting a gold key from member cooperative chiefs to commemorate his first year in office, which may constitute a breach of the Improper Solicitation and Graft Act.